Stock Groups

Evergrande Jumps Even as Its Fate Remains Uncertain By

© Reuters.

By Dhirendra Tripathi – Evergrande stock (HK:) closed 7.6% higher in Hong Kong trading Monday as the Chinese central bank repeated its determination to keep market conditions orderly, although the fate of the debt-laden Chinese real estate developer remained uncertain.

A payment due date on the company’s dollar bond was missed during the week before, which triggered a grace period of 30 days. However, Wednesday is the due date for interest on the 9.5% March 2024 dollars bond. 

This year, shares of the troubled company have fallen 83%.

Evergrande has liabilities of around $305 billion and is scrambling to raise funds to service them. The parent group’s troubles sabotaged a planned share sale by the group’s electric car unit on Monday: shares in China Evergrande New Energy Vehicle Group crashed 26% after it warned of an uncertain future unless it got a swift injection of cash.

Shares of another Chinese developer, Sunac China Holdings (HK:), closed 8.5% lower in Hong Kong after it sought “special policy support” from authorities in eastern Shaoxing because operations in the city have become difficult.  

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are provided by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.